Subtle Contraction in Global Crude Steel Production

The global crude steel output dipped slightly by 0.8% in 2024, reaching 1882.6 million metric tons, according to figures from Worldsteel. This modest downturn reflects a complex interplay of geopolitical tensions, shifting industrial demands, and decarbonisation efforts. Notably, while some regions like the EU-27, Africa, and the Middle East reported growth in production, dominant contributors such as Asia, the CIS, and North America experienced contractions. The EU-27 alone posted a 2.6% rise, delivering 129.5 million metric tons, showing strong resilience amid an energy crisis and environmental regulations.

Regional Disparities in Steel Output Patterns

Asia continued to dominate steel production with 1352.4 million metric tons despite a 1.0% dip. This decline was significantly driven by a 1.7% fall in China’s output, which remains the largest global producer. In stark contrast, South America, Other Europe, and Africa bucked the global trend by posting increases of 0.6%, 3.4%, and 1.0%, respectively. Oceania registered the sharpest contraction at -10.5%, highlighting its vulnerability to export dependency and raw material constraints.

Shift from “Scrap” to “Recycled Steel” Reflects Green Ambitions

The BIR Ferrous Division’s conscious shift from the term “steel scrap” to “recycled steel” aims to align public perception with the material’s ecological significance. An estimated 630 million metric tons of recycled steel are used annually in steelmaking, resulting in the avoidance of nearly 950 million metric tons of CO₂ emissions. This change in terminology not only uplifts the image of recycled steel but also accentuates its role in the transition toward environmentally sustainable or “green” steelmaking.

Recycled Steel Usage Contracts, with Sharp Declines in Asia

Despite its environmental importance, global recycled steel usage fell by 1.0% to 460.607 million metric tons. This mirrored a 0.7% dip in total crude steel production among the key reporting countries, which collectively account for 76% of global steelmaking. Leading this decline were major players such as China, the USA, Japan, and South Korea. China’s recycled steel usage slipped by 1.9% to 209.67 million metric tons, while its crude steel output declined by 1.7%. The USA showed an even sharper fall of 3.0% in recycled steel use to 55.3 million metric tons. South Korea’s 14.0% decline in recycled steel usage, despite only a 4.8% production drop, signals a significant shift in manufacturing inputs.

Resilience in EU-27 & Turkey’s Recycling Efforts

Contrasting Asia’s retreat, the EU-27 increased its recycled steel usage by 1.9% to 76.642 million metric tons, paralleling its 2.6% growth in steel output. Turkey also emerged as a recycling leader with a 7.5% jump in recycled steel usage to 31.273 million metric tons and a 9.5% rise in crude steel production. Turkey's recycled steel now accounts for a staggering 84.8% of its total crude steel output, the highest globally. These figures illustrate that targeted recycling policies and efficient electric furnace operations can significantly enhance sustainability in the steel sector.

Recycling’s Role in Furnace Technology & Green Steel

Global steel production methods saw 1326.4 million metric tons produced via basic oxygen furnaces and 549.0 million metric tons through electric furnaces . The slight increase in EF use indicates a slow but steady transition to more sustainable manufacturing. Additionally, worldsteel estimates a 3% rise in direct reduced iron use to 144.1 million metric tons, underpinning an expanding toolkit for green steelmaking. EFs and DRI methods are more compatible with recycled steel, making the recycling trend vital to meeting future decarbonisation targets.

Trade Flows of Recycled Steel Mirror Shifting Alliances

The EU-27 retained its crown as the world’s top recycled steel exporter with 17.024 million metric tons, despite an 11.4% decline. Most of these exports went to Turkey (+1.7% to 10.927 million metric tons) and Egypt (-6.9% to 1.640 million metric tons). Internal EU exports dropped 11.7% to 23.348 million metric tons, hinting at internal consumption spikes. The USA ranked second in exports with 14.417 million metric tons, though that marked a 9% decrease. Interestingly, countries like Australia (+16.1%) and Mexico (+24.3%) posted notable increases, revealing new trade corridors and recycling partnerships.

Leading Importers & Supply Chain Recalibrations

Turkey reaffirmed its position as the largest recycled steel importer, growing imports by 6.7% to 20.095 million metric tons. Its primary suppliers included the USA (4.533 million metric tons), the Netherlands (2.766 million metric tons), and the UK (2.217 million metric tons). India held second place despite a 23% drop to 8.46 million metric tons, with the UK and USA being top exporters to the country. Vietnam stood firm in third position, importing 5.327 million metric tons, largely from Japan and Hong Kong. These movements suggest emerging regional alliances and the reorientation of supply chains influenced by domestic demand and infrastructure expansions.

Key Takeaways

• Global recycled steel usage fell 1.0% in 2024 to 460.607 million metric tons, despite its critical role in reducing CO₂ emissions.

• Turkey leads both in recycled steel usage proportion (84.8%) and import volume (20.095 million metric tons), while the EU-27 remains the top exporter.

• Electric furnace production rose slightly, with 549 million metric tons, indicating a gradual shift toward green steelmaking technologies.